Earn higher rate of return on your investments

Assignment Help Financial Management
Reference no: EM13873580

Which of the following conclusions would be true if you earn a higher rate of return on your investments? Select one: a. The greater the present value would be for any lump sum you would receive in the future. b. The lower the present value would be for any lump sum you would receive in the future. c. Your rate of return would not have any effect on the present value of any sum to be received in the future. d. The greater the present value would be for any annuity you would receive in the future.

Reference no: EM13873580

Questions Cloud

Define which innovation theory fits this opportunity : Determine which innovation strategy theory best fits this case study organization: Explain what this organization did to create or develop and seize this opportunity. Define which innovation theory fits this opportunity
Determine whether the forward rate is priced appropriately : Determine whether the forward rate is priced appropriately
An analyst is evaluating securities in developing nation : An analyst is evaluating securities in a developing nation where the inflation rate is very high. As a result, the analyst has been warned not to ignore the cross product between the real rate and inflation. what average rate of inflation is expected..
Fixed cost per unit under the pessimistic case scenario : Scout's Manufacturing Co. is introducing a new product. The company expects to sell 2,340 units, give or take 10%. The expected variable cost per unit is $8.77 and the expected fixed costs are $12,285. The company bases its sensitivity analysis on th..
Earn higher rate of return on your investments : Which of the following conclusions would be true if you earn a higher rate of return on your investments? Select one: The greater the present value would be for any lump sum you would receive in the future. The greater the present value would be for ..
What epidemiology and how is used in the health professions : Identify measures of morbidity and mortality used to study health problems. Interpret common measures of morbidity and mortality, including death, birth, and infection rates.
What is blue ocean thinking : What is blue ocean thinking? Background of the blue ocean strategy
Treasury securities and the yield on debt with same rating : In December 1995 Boise Cascade’s stock had a beta of 0.95. The Treasury bill rate at the time was 5.8% and the Treasury bond rate was 6.4%. Assume the term structure of interest gives a 200 bp (basis point – a basis point is 1/100 of a %) spread betw..
Decreasing the portfolio volatility : Start with asset A which has an expected return of 10% and a volatility of 30%. Suppose that we introduce asset B with an expected return of 10% and a volatility of 30%. The correlation between the two asset returns is 0.9. What is the optimal combin..

Reviews

Write a Review

Financial Management Questions & Answers

  Researcher theorizes that people become pessimistic

Rodney the researcher theorizes that people become pessimistic on Friday the thirteenth. Consequently, he studies the data on the stock market to see what happens to the average return on Friday the thirteenth for the last 40 years. He finds that the..

  Calculate the expected value of the net present value

Determine the Standard Deviation about the Expected Value and calculate the Expected Value of the Net Present Value - what is the probability that the present value index will be 1 or less

  Using the wall street journal or barrons find the bond

using the wall street journal or barrons find the bond yields for treasury securities with the following

  The origination of a home mortgage loan is considered

The origination of a home mortgage loan is considered to be a

  A discussion of how the value of the option changes

Using the option pricing models, go into the marketplace and select an option. Using the option pricing models, value the option. Then discuss if the market value of the option is reflective of where the option is currently trading. Include a discuss..

  Compounded daily to accumulate money for his down payment

John plans to buy a vacation home in 6 years from now and wants to have saved $91,024 for a down payment. How much money should he place today in a savings account that earns 8.11 percent per year compounded daily to accumulate money for his down pay..

  Demand and supply shocks

Demand and Supply Shocks Which of the following can be inflationary?

  Compare the hedging alternatives for the eur receivables

Compare the hedging alternatives for the EUR receivables with a scenario under which Yankee remains unhedged and Compare the hedging alternatives for the MYR with a scenario under which Yankee remains unhedged -Do you think Yankee should hedge or r..

  What is the companys stock price per share today

Troy Tec Inc. is expected to produce $100 million FCF (free cash flow) at the end of year 3, $150 million FCF at the end of year 4, $180 million at the end of year 5 and thereafter the FCF is expected to grow at a constant rate of 4%. No FCFs ($0) ar..

  Expected return-discrete distribution-required rate of retun

The market and Stock J have the following probability distributions:  Calculate the expected rates of return for the market and Stock J. Calculate the standard deviations for the market and Stock J. As an equity analyst you are concerned with what wi..

  What is the average accounts receivable balance

On average, your firm sells $25,800 of items on credit each day. The firm's average operating cycle is 35 days and it acquires and sells inventory, on average, every 18 days. What is the average accounts receivable balance? A firm sells 14,200 units ..

  Present value of your windfall if appropriate discount rate

You have just received notification that you have won the $3.5 million first prize in the Centennial Lottery. However, the prize will be awarded on your 100th birthday (assuming you're around to collect), 64 years from now. What is the present value ..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd